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tv   Taking Stock With Pimm Fox  Bloomberg  September 19, 2014 5:00pm-6:01pm EDT

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and just felt like a way just to aally make band of outsiders global brand. menswear alone is a pretty small market, a pretty small set of magazines, media platforms through which you can communicate the message. womenswear is a whole other world. it is a huge, huge fashion machine. youne of the other ways managed to communicate your message was with, what, the longest fashion show in history? >> yeah, we have -- with menswear, for the last couple of years, we did fashion shows about fashion shows. not about making fun of the fashion show as a format, but trying to leverage technology, social media, everything happening in the world now and how people interact with imagery and fashion imagery. show did a 90 hour fashion >> this is "taking stock." didn't you? i'm pimm fox. today's theme is historic. >> essentially, we stuck a guy
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in a box in a gallery window in 's initial public paris for three days and created a set of rules that joseph boyce offering. it sees its stocks surge in its did in the 1960's and trading debut. founder jack ma has turned it into a company valued at more 231 billion. 1970's with his performance art, to turn the fashion show on its head, give people a different it is also a historic time for way of looking at clothes, watches as they evolve into more trying to tell the story of the than timepieces. one luxury watchmaker gives us clothes, the inspiration behind the clouds, and give people a ,icher -- behind the clothes his view on the apple watch. is one ofglock gun and give people a richer the most historic firearms ever connection with the brand and the store. made. we look inside the family drama thecott sternberg is behind this well-known brand. founder, chairman, and creative and i will sit down with director of band of outsiders. legendary historic musician sam you can read the story about his company in the latest edition of .oore, the ultimate soulman "bloomberg businessweek," available on newsstands and first, let's get headlines from every mobile device. shelby holliday. dumbing up, the growing business >> it was a historic day for of delivering dinner kits. alibaba. the stock rose more than 38%. how hellofresh is making it easier for busy people to cook meals in their home.
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the valuation is larger than and coming up, it has been amazon and ebay combined, and more valuable than all but 10 uneventful eventful day in the companies in the s&p 500. world of technology. was on the floor alibaba's public offering. .pple's iphone of the exchange today and discussed growth. tovery important is we want and larry ellison's move to step down as chief executive of oracle. ♪ build a company, not by a company. we want to make sure our ecosystem helps small guys. anything that can help small business grow, we will consider. china's richest man, with an estimated net worth billion. the nfl commissioner promised that the league will get its house in order. he rejected calls for resignation and said the league will strengthen its personal conduct code. apple ceo tim cook visited an apple store in california as new versions of the iphone released. there were reports that the larger iphone 6 plus is already selling out across the u.s. those are some of the top
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headlines. >> banks. let's get more insight on today's alibaba initial public offering. joining me from san francisco, bloomberg editor at large cory johnson, and here in new york, mia saini. what can we learn from today's initial public offering? was there money left on the table? >> i think from the beginning, everyone knew this ipo was priced for upside. the bankers knew that they wanted to price it so you could see a pop. we heard from analysts all morning that even a pop as high as 20% was expected. we saw 38%. that does not mean money was left on the table. it means the bankers met with management and decided the most prudent thing to do was to price it in such a way where you could avoid the type of debacle you saw with facebook. we learned the new york stock exchange knows how to deliver a smooth delivery. kudos to the new york stock
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exchange and to alibaba for pulling this off without a hitch. it took until 11:53 a.m. to get the final figure, in terms of supply and demand through the human auction, but they were able to do it. there were no glitches. >> cory johnson, come in on this idea of pricing the initial obligor offering to perfection. did they leave any money on the table? why would the bankers are busily underprice an offering? doesn't that speak to the issue of manipulation? >> i hate to disagree with a keep meaningant to name alive for a long time. works keep it alive, my friend. >> i love it. tons of money was left on the table here. the goal was to create a stock, not just to give value to selling shareholders today. i remember years ago, when barnes & noble dot com went public, it sold down a little
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bit. i wrote a column back in those days when i was a writer, and pointed out that was the best thing for barnes & noble dot com. it treated the ipo to raise funds for the business. i got a letter from the ceo later on to say that was exactly the point. it was considered a failed apo -- ipo because the stock went down, but the company got the assets. --yahoo! had $92 a share >> this is "taking stock." they surely would have liked to raise more money, but the looking to eat healthy, trim pricing was not up to them. your expenses, reduce that alibaba chose the superstitious number of $68, rather than the waistline? hellofresh delivers healthy meals to your door that you can cook for as little as $10 per market offering price of $92 a share. meal. they want to create the suggestion of a successful recently, it announced expansion company, and the notion of a plans for the united states and delivers food to the 48 lower stock chart that goes up and to states. the right -- particularly if i am joined by its chief ,xecutive officer of the usa they want to sell more shares later in a secondary offering. if they want to use the seth goldman. since you were last on "taking successful public offering as a
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marketing event to try to bring stock," you have expanded to the products to the united states -- 48 lower states of the united but there clearly was money that states. where have you seen demand come could've have been made by from? people selling the stock, >> a great question. thanks for having us back on. because the market would have supported a higher price. quick stay with me a moment. we are thrilled to now deliver i want to bring in my next to pretty much all americans. chu from sanhsu -- we are seeing lots of different segments. you have people having no time to cook, no confidence in the francisco, founder of the gaming company caban -- kabam. kitchen. you have people who really just -- we need to get them over that hump. alibaba invested in his company. i don't want to travel 40 i am also joined from the minutes each way to a grocery store. executive of a payments gateway someone wrote to us and said, the grocery store is more than that is compatible with the an hour away, and without you i alipay service. never would cook and never would get this high quality of groceries and meet. -- meat. let's talk about that service, specific get to buy if you can. what exactly does this mean, when you are a gateway to an meals. alibaba pay service? it comes wrapped and fresh, all >> it means we help margins let the ingredients plus instructions. >> every week, we send a ts letrs -- let merchan beautiful box of food with fresh vegetables, protein. we have vegetarian options. shoppers pay, like paypal. we have meat and fish.
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we have everything including but alibaba is bigger than paypal. step-by-step recipe cards to >> you become a conduit for make it simple. >> this is also for people that alibaba payments? maybe want to do this with their >> correct. family, want to cook as a group a conduit for merchants to use experience with children. visa, mastercard, apple pay, all it is an experience everyone is going to have to go through, and the different payment types everything is already purchased. around the world. after this week, we have gotten experience.od as an flooded with inquiries from merchants who want to be able to enable alipay just like paypal. so many customers tell us they are cooking with their kids. it is such an emotional i want you to experience to do that. it teaches them lifelong skills, and they love it. explain what it is like to deal >> you can do this for as little with alibaba as an investor. >> alibaba is fantastic. as $10 a meal. what are different meals and they are very long-term in how they think as a company. price ranges? i think you heard from jack ma >> our major products army and that he thinks about the fish, which is a little more ecosystem of whatever he is than $10 per meal. going after, whether it is the vegetarian box comes out to around nine dollars a meal. e-commerce or a global footprint. we think very long-term about >> i noticed you are based in types of product we are making berlin as well as new york. for the mobile gaming market, you sir germany, austria, the which is come from entry to netherlands, the u.k., and not where they are going in the china market as well as a broad, in terms of focusing -- as well the united states. this is an international
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as a broad -- as well as abroad experience. >> we are in australia as well. it has been wonderful to have in terms of focusing on gaming. these different countries we can talk to about different recipes. >> is somebody said, your "taste of italy" company is worth $100, but you found out later it was worth on month in october, a journey hundred $30, would it bother you? >> i would have a big smile on through the entire country, so you can explore foods from my face. different parts of the country. it would not bother me at all. >> there you go. >> what about sourcing the produce? other people see the same thing >> a big deal. we want high-quality produce. and come up with a different opinion. we have sourcing on the east and the event of the west coast. listing of the stock was a great we are every week going back and day for us to focus on what saying, is this the quality we like? alibaba is, how the business works. we are challenging our suppliers the notion that it cannot be traded as a stock i think is a much smaller cultural and and constantly pushing them to improve their game and get us better quality, fresher, and business event them the than the of alibaba -- more delicious produce. emergence of alibaba as one of >> it is not frozen, right? the largest retailers in what is is comes packed in ice. that has to be a labor-intensive proving to be one of the largest markets in the world. operation. payou heard about this >> we have a great team and our
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fulfillment centers who can pack system that integrates with a variety of different payment each book -- each box and make networks -- visa, mastercard, sure it gets there in perfect condition. and so on. like steve have a favorite meal you make? -- >> do you have a favorite how important is that inside of china itself? do they have the ownership of that kind of pay network? meal you make? this meal with barley and >> it is interesting. let us talk about where alipay avocado salad -- we recently stands. brought it back. people do not cook with barley. right now, it is not under the umbrella of alibaba. 50% stake inhave a we are introducing them to new ingredients. people love avocado. we are getting that into their the company. diet. >> what about the funding to thea-owned enterprises run make this happen? raised $50 we show. those are the top banks supported by the chinese government. million to help us grow the u.s. recently, the chinese government business as well as our international business. we are really ready to keep injected a lot of cash into the system. things going. they have a huge say in how things work and how the conduits >> you saw the alibaba ipo today. work. maybe that is in the future for currently, that structure does hellofresh? >> maybe a little bit bigger. not really exist. already, you see backlash from maybe a little bit smaller. banks that do not want to have their accounts linked with but that is the track we want to go down. alipay. areoes this come with wine pushbackeeing anything to drink, or is that in recently. the next iteration? >> what about delivery and >> it is already on the agenda.
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payment? is that handled electronically? not now, but we are thinking about it. in some countries, you deliver >> you are making everybody and then you pay at the door. hungry. , chief executive does it stands, alipay officer of hellofresh. have a monopoly on the delivery ♪ and payment system, especially fiveer three through tier companies. is only way to get products through alibaba's logistics team. they own the pipe. >> thank you. chouanks to cevi -- kevin dangelmaier. i will speak to the maker of timepieces that cost over $1 million a piece. ♪
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>> live from san francisco, welcome to "bloomberg west" where we cover innovation technology in the future is this.
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like this is "taking stock." alibaba getting more than 38%. also setting a record as the waited hours fans largest u.s. ipo ever. to purchase the awaited iphone 6 what is the future of the and iphone 6 plus. company? next year, the apple watch goes on sale. knows all about this anticipation. it creates luxury timepieces that can take as long as two years to manufacture. i had a chance to sit down with chief executive officer his-marc jacot, and got thoughts on the apple watch and the market for luxury timepieces. it is an elegant watch. it is not very sporty. i'm elegant watch. watch, withgant very nice design. very sophisticated design. the dials are very important for us also, because the dials are something very important to the watches. lexis this is handmade as well.
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everything. >> everything. the case, the dials, and the movement. the movement obviously is the most important part of the watch for us. we have very sophisticated movement. hand finishing. isry single movement handfinished. >> how long does it take to make one of these watches? yearsm one month to two -- >> depending on the complication. and let us say you were lucky enough to be able to afford a watch that took two years to make. what would something like that cost? >> for us it starts at, let's to $1 million,p basically. we have some objects that can go up to $6 million, with clark's -- with clocks, not just a watch. to $1s are $200,000 up
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million for a complicated watch. >> electronic watches -- apple said to be introducing a watch that will happen in 2015. when you heard that news, what did you think? >> i was very happy. it is a very good opportunity to talk about watches. it is a good opportunity to talk about mechanical watches. a lot of people that try to make a fight between what we call the smart watch and the traditional mechanical watch -- personally, i think it is a very good thing for the consumer. today, almost nobody has just one watch. and i think it is a complementary watch, the apple watch. and apple watch is something good to move the technology ahead also. my only concern for switzerland is that the apple watch is not a watch, in fact, and is nothing
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to do with the swiss watch industry. the apple watch is an instrument you put on the wrist. the cause you put it on the wrist, we call this a watch. in fact, it is a different thing. in switzerland, we do not have this technology to produce these things. it is more to do in the west here and asia. some people in the swiss watch agency say it is not a competition. it is a competition, because any single instrument is giving competition to a watch. so we have to be careful. we have to take this very politically, that we have to be careful not to sleep too much in switzerland, and to wake up a little bit, and to think maybe there is a market for this type of watch, even for luxury builds. i don't know. business, foris the moment, all the smart watches on the market for the last four or five years, three years -- no one was a success.
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not one. but with apple it will be different, i am convinced, because apple has a big community. and apple is a community project. all the other iphone company is a commodity product. and this is a difference we make , and apple i am convinced will have success with the watch. quick cc as perfectly consistent that an individual would have an apple watch -- >> you see as perfectly consistent that an individual would have an apple watch but also a parmigiani watch? >> sure. i like so much apple that i would maybe have one. it is nice. it is like a toy for us. >> if tim cook of apple came to you, called you up and said, jean-marc jacot, we really want you to make us -- we want you to design a watch for us --
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>> honestly, intellectually, i would be very interested. i do not know if we could succeed and do something with apple, but i would be interested to do things like that. because this is the future for sure. it is part of the future. i am surprised that people agree to live with so much stress on the street, on their wrist. can you imagine a stressful event? you have everything on the watch and you will control every five seconds what you have. how many miles do you watch? it is terrible, you know? >> that is maybe why you need a parmigiani watch. it calms you down. >> exactly. more high tech, more mechanical things and traditional things will have a big market. >> that was the chief executive of parmigiani, jean-marc jacot. coming up next, the family that is taking aim at each other over control of the famous gun company glock.
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we find out what is behind this battle. ♪
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>> the glock semiautomatic policeis a favorite of departments, hollywood directors, as well as gangster rappers. arehe family behind the gun in turmoil. the glock family feud is the topic of an exclusive report in the new issue of "bloomberg businessweek." spoke writer paul barrett exclusively to the glock family and joins us with details. thank you for being here. i want people to understand you followed the business of glock because you have written a whole book about this. >> my book is about how the
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austrian-made glock handgun redefined the market for sidearms in the late 20th century. it ushered out the era of the six shot revolver, and ushered in the era of the large capacity semiautomatic pistol that now is seen as the standard around the world when it comes to handguns. >> at the beginning, when the fabricator of the glock gun itself fired that first shot in the back yard, in their factory, i guess it was, in austria, or was no guarantee this was going to take off to become a multibillion dollar industry. >> it was a family garage business. >> curtain rods. >> curtain rods and other house fittings. through a freak occurrence, he had done some work for the defense ministry. put up his hands to design a new handgun for the austrian army. he had never designed a new gun
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before. in hisk of confidence ability was demonstrated by the fact that when he tested the gun, he used his left hand rather than his right hand, because he was concerned his prototype might blow up and he needed to keep his right hand for drafting purposes. this is a tiny paperclips and grewr bands operation, and into the most influential handgun company in the world. >> the manufacturer behind this, glock, had people helping him do this, and they were members of his family. >> his wife helga and three children -- in the 1960's, they were involved full-time. helga did the administrative work, drove the van, and did deliveries. all the children came in to the business as soon as they left the equivalent of high school. their father told them, no need to go to university. learn from me.
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>> what happened? >> gaston glock had a stroke in 2008. when his wife was notified, she you. i will take care of he said, i am not alone. who was with him but a 50 years younger woman who the family had not known? before you knew it, the family had split apart. gaston glock was off with the new mrs. glock, who he married, and then he fired his wife and ,hree children from glock gmbh the parent corporation. they are now at war, legally speaking, in austria, over not just the fortune this company has generated over the years, but future beneficial ownership of the company. the company is now owned by a murky trust or series of trusts. no one is quite sure. mrs. glock says that she and the children made an investment in the company and want control of what happens to it.
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>> check out this story. a great read. paul barrett of "bloomberg businessweek." in thes complete story new issue, available on newsstands and all your mobile devices. coming up, the original soul man lends his voice to bluegrass. ♪
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>> this is "taking stock." newsroom for the headlines. >> silver lake management stands to make more than five times its investment in alibaba after the record-breaking ipo, according to a person familiar with the matter. silver lake is the biggest technology-focused eye out firm. today -- buyout firm.
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roger goodell rejected calls for his resignation. he did admit to making mistakes. >> i got it wrong in the handling of the ray rice matter. and i am sorry for that. i got it wrong on a number of levels, from the process that i led to the decision i reached. >> he says the league will get its house in order and strengthen its conduct code. scotland voted to stay in the 103--keeping the 3-7= -- union intact. >> my next guest has more than the decades, 50 years in music business, under his belt. he started as part of the
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rhythms and blues duo sam and dave. gone on to win a grammy award. he has become a member of the rock 'n roll hall of fame. sam moore is embracing another musical tradition, bluegrass. he is along with a group called new blues. thanks for being with me. thedid you get involved in whole bluegrass thing? you go from r&b to the grass. have you always been interested in bluegrass music? >> very carefully. >> you did not do this by rushing out and making it happen. >> i just, you know, when they were asking me, i wanted to make sure they have a good record. i have not heard nobody. i looked at it. i looked up caroline. that is good., so >> that means you do not have to worry about that. >> i said, ok.
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send a check? they have not sent it yet. >> maybe it is a direct deposit thing. >> that is good. >> when did you first decide that the soul man, sam moore, was right for your group? song have this great tribute to george jones, and we wanted to duet with someone who had a connection with george. sam saying at the george jones tribute show last year. we thought of him and his legacy. he was a legend in his own right. it seemed like the perfect fit to invite him. >> sam moore, tell people, who is george jones? -- one of thebest best country singers, if not the best. , but a giant amongst giants. you know, you can have 30 or 40
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people in a stadium, and everyone can sing the same song. but as soon as george's voice opens up, you've got to go, wow. this is a man that sings between his teeth. >> sings between his teeth. >> and he is mesmerizing. that is george jones. complex. but once he hits the stage, you forget all about that. you love him. >> hitting the stage has not been an easy road, to get to this place. i was noting for example that one of the record companies you were doing business with -- they went bust. you ended up having a stroke, and you fought your way back from that. tell us about this adventure. >> in 2003, right after we i had strokes, that left me without the ability
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to talk and without the use of my right side. i went through several months of rehab. i got my voice back first, which was a blessing. went through several months to learn how to walk again and learn how to do things with my hands. the whole time, we had the band there. we were still working with the music. that was part of my therapy, is the music, going on with that, and having this not just dream but ambition and goal to be a full-time musician. >> sam moore, the physical aspect of singing and performing -- as i mentioned, you have been doing this for over 50 years. do you have a routine so you keep in shape? you may have faced issues with your health in the past. carolyn is- describing, bouncing back from something as serious as a stroke. >> when i was living here during the days of sam and dave, we got in a lot of trouble. he and i both. same with george.
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but if you have got people that toe you, and you are willing be so big as to ask for help -- i asked for help. i cannot do this by myself. the people that love you, regardless -- after sam and dave, that was one thing. it.i beat and you know, i am thankful. on onee doors close side, it opened on the other side for me. and i have been so fortunate to have been in this business as long as i have, where people respect what i do as an artist. and i don't let nothing come between that. , you'd take itd to the bank. -- i am verything careful about my personal life.
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very. and i was only kidding about nu-blu, but when i started to sing with them and i met them -- when i like you, i will pick at you. if i don't, i will keep it personal. and i met them, and they were the most nicest and the most talented. and they said, sam, what we want to do after this is done -- we want to give you something. i thought it was money. i got my hand in my pocket. and they started playing guess what? "hold on to me." you cannot believe what it sounds like. i have had everybody do it different ways. .ut they did it and they are the greatest. someone said today that carolyn 's voice -- a dear friend of mine said, she is so commercial.
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and she does. she sounds good. she is sweet. but it is there. i do not mind singing. i did not mind saying with her. but the last time until she pays me. >> what would you like to do next with sam? has in store. whatever he would like to do. i am still so thrilled and so excited that we have got this song out. it is so easy for everybody to get. i can grab it on right now, official download. you can order it from walmart and have it delivered for free straight to your store and go pick it up, and have the product in hand, and enjoy this man's vocals as much as i have. >> i think maybe there is a check coming in the future, and maybe more work. >> that is not so bad. me.hanks for being with sam moore, grammy award-winning artist and member of the rock 'n
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roll hall of fame. coming up, the story of a one-time hollywood agent who is now designing clothes. i introduce you to the band of outsiders leader who is opting overricks and mortar e-commerce. also, the chief executive of hellofresh, a food delivery service that expanded service across the united states. ♪
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>> this is "taking stock." companies such as bonobos and rent the runway focused on bricks and mortar expansion of few years after pledging they would be web only retailers. at web-onlyt scoffs sales business. he wants bricks and mortar
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stores to help him build his brand. i am joined by the band of outsiders founder and creative director scott sternberg. a concise history of band of outsiders. how do you go from being in the world of hollywood to the world of fashion? >> the short answer is, you kind of do it. working agent at caa, on technology, new media, entertainment marketing deals. kind of got a taste of entrepreneurship, and had the idea i wanted to make things and not provide services. the apparel industry, the fashion industry, is one where there is low barriers to entry. the stores are ready for new talent, almost desperate for new talent. in terms of the supply chain and peace goods and factories and all that stuff, they are all pretty open to working with young entrepreneurs. the short answer is, i just kind of did it. >> you kind of did it in the
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united states. having things made in the usa was also part of the brand, right? >> in the beginning, it was a matter of, honestly, just necessity. and then it became a narrative for the brand, and several other brands at the time. just to be able to make things that low minimums, to make things locally, where i was able to be able to touch and feel the product, and just manage the process by myself, which i was doing for several years. and through that it really became not just a romantic marketing notion, but something that felt integral to the brand and still is important, depending on the product. >> i was going to say that you also enjoy watching, perhaps even secretly watching, your customers shop at your new soho store. that gives you a bit of a buzz, doesn't it? >> we have been in business for 10 years. i have great retail partners, stores like barney's, rebirth
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goodman.-- bergdorf to have the experience of merchandising the product and being able to watch the customer, not the buyer from the store, but the actual customer -- to see what comes out of the fitting room, size issues, color -- all that stuff. it is so compelling. it takes you out of the bubble of being a manufacturer, a business person, and really -- it forms a new connection with your product. >> how would you describe your menswear line? i know for example you could spend $400 for a shirt if you wanted to. around $225. you could spend $400 if you wanted to. at its heart, it is the future of american prep. in terms of the approach and the make and all of that, we work with beautiful fabrics from italy and japan.
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we design a lot of our fabrics in house. they are new and exclusive to us. there is a sense in terms of the fit of something that is quite , and that take. and there is a sense of luxury in terms of the art is on all -- artisanal approach. men'sstarted with your line, but moved on to include a women's line. .ell us about that >> i think it is the natural progressive when you are making close, as a creative person and a business person. is huge,t for women globally. it is an appealing thing. it was a natural extension of what i was doing for the menswear.
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